5 Proven Steps to Maximize the Sale Price of a Development Site in NYC

By Bob Knakal – Recognized as the Top Development Site broker in the World.

Selling a development site in New York City?
You’ve only got one shot to do it right.

Over the course of my career, I’ve sold hundreds of NYC development sites—totaling over 30 million buildable square feet and over $8 billion in total transaction volume just in this asset class. Some of these have been among the most prominent land deals in the city’s history.

And here’s the truth:
Every single one of those record-setting sales followed a system.

If you’re thinking about selling your site—whether it’s a vacant parcel, an income-producing building, or a long-term hold—it pays to follow a structured process that tilts the outcome in your favor.

Here are the 5 steps I recommend to maximize your sale price:

1. Investigate Possession Issues

Tenant issues can kill deals. Or, at the very least, they chip away at your sale price.

If your site is vacant, you’re ahead of the game. But if it’s occupied, you need to:

• Read every lease carefully
• Understand buyout provisions and termination rights
• Proactively begin negotiations (when possible) before going to market

Buyers will factor the risk and timing of obtaining possession into their offers.
The more clarity you can offer, the higher your price will go.

2. Have a Zoning & Massing Study Prepared

Zoning in NYC isn’t simple. Even two properties in the same district can have different development outcomes based on frontage, depth, corner exposure, and more.

That’s why I always advise sellers to:

• Commission a zoning analysis from a qualified expert
• Get a conceptual massing study and sample floor plan layouts
• Provide buyers with a blueprint for what could be built

Buyers don’t pay top dollar for guesswork.
They pay for vision—and data that supports it.

3. Prepare Environmental & Geotechnical Reports in Advance (and try to get access agreements from neighbors where necessary)

In NYC, sellers rarely grant post-contract due diligence. That means buyers must complete all investigations before signing.

To build trust and speed up deal flow:

• Order a Phase I Environmental Site Assessment upfront as well as a Geotechnical report demonstrating subsoil conditions. 
• Increasingly for developers in NYC, access agreements from neighbors are becoming more and more important. Access agreements should be obtained if possible. 
• Understand and disclose any red flags (e.g., underground tanks, dry cleaner contamination)
• Allow buyers to “update” your report through the same firm at lower cost and faster turnaround

It’s a small upfront investment that reduces friction, builds confidence, and weeds out time-wasters.

4. Look for Expansion Possibilities

Many of the best deals I’ve sold started small—but grew.

Before we list a site, my team always explores:

• Whether neighboring properties are for sale
• If transferable development rights (TDRs) can be acquired
• Air-rights, or bonus opportunities that create value through incorportation

Some of the largest deals I’ve closed involved assembling up to 14 separate parcels. That didn’t happen overnight—but it did unlock extraordinary value.

The BKREA Policy & Zoning SWAT Team consists of policy and zoning professionals that can provide granular insights relative to maximizing development site potential. 

5. Put the Property on the Open Market

This is where most sellers leave money on the table.

Here’s what you need to know:

There’s a 50% chance your buyer isn’t even on your radar.

Time and again, we’ve seen new-to-market developers or foreign investors beat out NYC’s biggest names. Why? Because they’re hungry. They’re aggressive. And they’ll pay more.

Listing quietly—or going “off-market” to a few names—isn’t a strategy.
It’s a risk.

Work with a broker who will:

• Market the site to every active developer in NYC
• Market the site globally, through a network of all firms, not just one. 
• Bring in unexpected buyers
• Handle negotiation to push pricing beyond expectations

You only get to sell it once. Why not sell for the highest possible number?

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Frequently Asked Questions

1. How long does it take to sell a development site in NYC?

If pre-market materials (zoning, environmental, tenancy review) are ready, we often go from listing to contract in 45–90 days. Larger or more complex sites may take longer.

2. Do I need to disclose known environmental or zoning issues?

Legally, you might not always have to—but strategically, it’s smart. Disclosing known issues upfront builds trust, saves time, and avoids post-contract re-trading.

3. What does a zoning and massing study cost?

Depending on the complexity of the site and consultant used, you can expect to pay between $5,000 and $15,000. It’s worth every penny in buyer confidence and speed.

4. Can I still sell a site with tenants in place?

Yes—but you need to clarify lease terms, expiration dates, and any buyout history. The cleaner your possession story, the better your price and the broader your buyer pool. You will likely have to provide estopple certificates for tenants to remain. 

5. Are air-rights and TDRs worth pursuing?

Absolutely. In many cases, they’re the difference between average pricing and exceptional outcomes. It’s worth investigating even if the timeline feels long.

6. How do I know if my development site is worth more assembled?

That’s where we come in. My team routinely assesses assemblage potential, neighboring owners’ interest, and zoning capacity to unlock additional FAR (Floor Area Ratio).